IMPINJ Inc (NASDAQ:PI) shares climbed nearly 8% in Friday’s trading session, after the radio frequency identification technology maker blew away expectations for its first-quarter earnings, posting sales and EPS of $31.7 million and $0.01, compared to consensus estimates of $30.8 million and a one-penny net loss per share.

In reaction, Canaccord’s top analyst Michael Walkley reiterates a Buy rating on PI, while slightly raising the price target to $38.00.

Walkley commented, “Impinj reported Q1/17 results with revenue of $31.7M ahead of our $30.8M estimate driven by strong overall sales of all layers of Impinj’s platform. Management also provided revenue guidance above our/consensus estimates driven by continued strong adoption with both existing and new customers as the RAIN ecosystem continues strong growth trends in multiple vertical markets.”

“We believe Impinj’s market leadership in RAIN-based tag ICs, reader ICs, readers, and gateways positions the company to cross-sell additional platform products to existing tag IC customers. We expect tag IC volumes will grow at a CAGR of 30% through 2020, driven by increased penetration rates in large vertical markets including retail, healthcare, and automotive. We believe Impinj’s relationships with leading retailers — including Macy’s, which intends to roll out RAIN endpoints to 100% of its merchandise, Target, and at least 19 of the top 30 US retailers having active RAIN programs — position Impinj to increase market penetration, drive strong revenue growth, and expand adjusted EBITDA margins,” the analyst continued.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Michael Walkley has a yearly average return of 20.1% and a 66% success rate. Walkley has a 43.6% average return when recommending PI, and is ranked #25 out of 4561 analysts.